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're investigating it, along with somebody from boeing, the faa, ntsb, they're sending investigators to japan. and now what we have in japan are the two main carriers there, the first carrier is really to take a large number of dreamliners, they've grounded their fleets, at least for today and tomorrow. al nippon as well as japan airlines. 24 dreamliners. that's roughly half of the 50 that we've seen delivered so far by boeing. no flights again today, or tomorrow. here's what the focus is ultimately zeroing in on for the ntsb and faa. remember japan airlines flight that had the fire in boston last week? this is a battery unit from it. look how charred it is. that's along with what happened in japan on this emergency landing, that's going to be the focus for investigators as they take a look at what's going on with the lithium ion batteries. who makes these batteries? a firm out of japan. if you look at shares of that company, it's under pressure, understandably today. the firm has said they will cooperate with the investigation. and what you have now, carl, is a situat whe do a manufacturing
't know right now. so i know they're saying that. but we have the faa all over the airplane, the ntsb all over the airplane. i think the risk for the -- i see two camps on this stock. you have the teethers, those who believe everything is a teether problem, and the tip of the icebergers saying could this be something else. i think with this investigation going on and the faa already actively on the airplane, it will be difficult to take event, especially if it's a severe event, and say, this is fine, this is fine. long term they're going to sort it out. i agree with what jim cramer said, i'm in the same camp that said, why not do a derivative play on this story, if you have more risk maybe someone like spirit aero systems. >> at what point do you say this is the point of fear of investors are running? that's the time to get in the stock. we've seen that in different scenarios, that we don't know what we don't know, as you said. that is exactly the time you wanted to go in. what's going to make that turning point for you, do you think? >> well, i have to say, because there's a formal inves
in the news, a lot of people saying are there others out there. the ntsb yesterday gave an update in terms of where the investigation stands, including showing the media what's going on in the ntsb lab, seeing the charred batteries from the 787 dreamliner that was the one that had to be put out in boston. well, now they still say they do not know the exact cause of the batteries catching fire. as for those batteries and one other component, the charger, the charger for the batteries built by a company called secureaplane, a plant out in tucson, arizona. back in 2006, there was a fire involving lithium ion batteries for the 787 at the secureaplane plant. a worker there warned the company about the batteries and the chargers and the possibility of fires. >> these lithium ion batteries, too much heat and they'll explode. it will be a nightmare. >> michael leon was dismissed from the company for repeated problems on the job. secureaplane told me yesterday the battery charger for the dreamliner was successfully tested. there was a fire in the facility in 2006 during one test. however, the curre
in what we understand. the ntsb and boeing, a technical team from boeing, they're investigating the fire on the dreamliner. it was found in a compartment with batteries, and electrical components. it's not entirely clear at this point exactly what caused the fire. it is believed that it might have been caused by one of the lithium batteries on the dreamliner. that is an issue, because the dreamliner uses lithium im batteries to power onboard electronics. way back in 2007 the faa issued special rules for the use of lithium im batteries because of the concern of flammability risk involving those batteries. this is the fourth dreamliner incident involving its electronics, or losing power, since december 4th. look at this timeline. back on november 4th, united took its first domestic 787 flight, at the time there had been no reports. a month later, a united flight going to niewark to houston, experienced mechanical problems, reporting a loss of power. cutter airways a few days later had to ground one of its 787 jets for what it said was a faulty generator. the 14th of december, united ground
in the united states, the ntsb continues to look at the japan airline 787 battery, but in reverse of what we're seeing in japan, they say this battery was not overcharged. the investigators are in arizona today visiting the battery charger manufacturer. that is a company called secure a plane. it's a subsidiary of mega plc out of the uk. over the last couple of days, that's seen a little bit of pressure as well. what we're seeing is an investigation where they haven't been able to square up what happened in japan with what happened in boston, so as a result, they're going to start diving further into the components that go into the dreamliner, and are connected and work with the battery to see if they can find out exactly what went wrong. and then from there, they might have a better sense of how to correct the situation. guys, back to you. >> now, phil, because these two regulatory agencies on opposite sides of the ocean are seeing different things in their investigation. does that tell you that the investigation may be much longer than anticipated? >> well, yeah, it would be different if o
said, the fire at logan is a unique example and the ntsb is investigating but i think trying to connect this event to other events is pure speculation at this point. we don't have a lot of data. >> have you seen any sign that production might be interrupted, slowed down if, in fact, they have to address the things along the production line? >> none whatsoever. >> because as the journal points out today, you get paid upon delivery and worst-case scenario would begin to avoid cash flow if they were delayed. >> yeah. look, the central bull thesis for boeing shares is about the large amount of cash the company will generate over three or four rates and with the 787 ramping up to very high levels to meet customer demand. if we were to call in to question that cash flow, that weighs against the bull thesis. we don't have any data to suggest that will happen. the planes are still flying and i would say these sorts of teething problems are normal for new planes. we have them on the a-380 and we have to wait and see and we need more data and not calling in to question the long-term fundamentals.
Search Results 0 to 5 of about 6